Dubai realtors, residents pleased with new property legislation
Both residents and realtors in Dubai were pleased with new legislation passed by Dubai authorities which tasked the special judiciary committee in charge of settling disputes between landlords and tenants (Dubai Rent Committee) and places an annual 7 percent cap on rents.
The new decree, which went into effect on January 1, will supposedly help stop spiraling costs of rents.
“The 7 per cent rent cap will help many to save," said Mohammad Kazerouni, an Iranian, according to Gulf News. With rents were spiraling, many expatriates have been forced to send their families home.
Real estate agents also welcomed the new rule, saying rent increases were not commensurate with employee salaries.
"Dubai needs this kind of short-term surgical approach to the rental-control problem," he said Ryan Mahoney, managing director of Better Homes.
"Any more than the rents are now is too much. People can't afford to accommodate themselves, and businesses can't afford to accommodate themselves," he added.